GR Today - August Issue

August 10, 2018

White House Considers Steep Increase In Tariff Rates

The Office of the U.S. Trade Representative (USTR) has recently announced that the new list of products targeted for tariffs under the Section 301 investigation is under consideration for an increased rate of 25 percent, which is more than double the initially proposed 10 percent. The latest list of tariffs includes several products that are popular in the promotional products industry. Handbags, luggage, headgear and LEDs can be found on the new list of tariffs. Components such as machinery parts and a wide variety of fabrics are also on the latest list of tariffs. China has responded to the latest tariff list with the announcement of their own retaliatory tariff list consisting of $60 billion in tariffs on U.S. exports.

Imposing tariffs on products such as handbags and apparel would raise prices for American consumers and promotional products industry companies, and many believe it will accomplish little in addressing the problems that stem from China’s unfair trade practices.

The new list will follow the same regulatory procedures as the first list, including a public commenting period that is currently open until September 5, 2018 and a public hearing scheduled for August 20-23, 2018. We encourage PPAI members to contact the USTR and urge them not to move forward with these harmful tariffs. The instructions for submitting a written comment can be found on page nine of the Federal Register Notice. The procedures include listing a docket number (USTR-2018-0026) and give a location to make the submissions, which is regulations.gov.

FDA Approves Drug Derived From Cannabis

For the first time in its history, the U.S. Food And Drug Administration (FDA) has approved a drug containing cannabidiol, which is a natural component of cannabis. Named Epidiolex, the drug is designed to treat two severe forms of epilepsy that affect children as young as two years old. Cannabidiol is one of over 80 active chemicals in marijuana. The compound is a key ingredient in Epidiolex and is reportedly known for having a variety of medical benefits without the intoxicating effects of marijuana. In a statement, the FDA commissioner cited the well-controlled clinical studies that supported the drug’s approval. For more information about how cannabis and related products are being regulated across the country, PPAI’s Product Responsibility Summit will host a session addressing emerging regulatory challenges related to cannabis.

Promotional Glassware Bill Advances In California

A legislative bill that would allow beer manufacturers to give promotional glassware to business partners has cleared the Appropriations committee in California’s state Senate. AB-2573 currently awaits a full vote on the Senate floor and has already passed the Assembly. If the bill passes into law, it would allow licensed beer manufacturers to give up to five cases of advertising glassware to licensed retailers per year, per location. The bill would also allow retailers to accept up to 10 cases of promotional glassware each year at every location.

Phone Charger Fire Forces Evacuation From Flight

Travelers on board a Ryanair flight were forced to evacuate the plane just before takeoff when a power bank caught fire in the passenger cabin. A passenger on board the flight was using the portable charger to charge a mobile phone when smoke began to fill the cabin. One of the other passengers recorded the incident as well as the ensuing evacuation.

Until next month,

Maurice Norris

Public Affairs Manager

Questions or comments? E-mail us at ppailaw@ppai.org or call 888-I-AM-PPAI (426-7724).

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